All Forum Posts by: Josh Smalley

If you were in my shoes, what would you do?

My why: financially free so that I can split my year into 3 four month periods (4 months with extended family, 4 months in nature doing conservation work, 4 months working on philanthropic projects with NGOs [I live in Ethiopia right now and have access to many such projects]). For my wife and I, this is a HUGE focus and the driving force to what we want to do in the next ten years.

My job: my wife and I work and live internationally as teachers. It's our 7th year internationally and we don't plan to return to the US any time soon. Financially, it's a strong move for us to teach internationally as we make probably 2 to 3Xs what we would make in the US all things considered. We have a decent chunk of change to use toward purchasing property every summer due to low cost of living and good pay as international educators.

My summer home: Seattle

My current investments: performing SFR in Idaho, piece of land in Costa Rica, performing treehouse rental in Costa Rica, some paper assets.

My next goal: find a market where I can purchase cash flowing properties such that I can replace my current income in the next 10 years, with some excess for continual portfolio growth and for capital to put toward my philanthropy projects.

Education: listened to nearly every BP podcast, follow the forums and occasionally post, have a couple investments under my belt, read 10 books (give or take) on real estate investing, lead a REI group in Ethiopia. The learning curve is still steep for me, but I'm working on it.

Obstacles: don't really have a good "boots on the ground" team in any market yet (contractors, brokers, etc.). Also, I only visit the US for two months a year in the summer, so almost everything has to be done remotely. Given my goals, I'm not so keen on partnerships, although I would be willing to consider this if the context works for me. I don't have a ton of capital available. My international income is a turnoff to underwriters when leveraging. Most of my investment strategies seem to be a bit limiting given my living situation.

My value add: this one is hard for me. I'm not sure what I can do in terms of value add. I do have access to a unique demographic and can help others network into that demographic (international educators). I can offer value in ways outside of real estate itself--photography, videography, fine art, travel tips/consultation, etc. I just can't seem to find the "hustle" value-add. Maybe there's something I can do online to add value. Hmmm. 

So, what strategies would you use? What approach? Simply Buy and Hold MFH or SFHs? Note investing? Reits? Partnerships? I'm leaning toward 2-4 unit homes and trying to obtain 1 a year for the next 10 years. It seems like that would provide what I need but maybe I'm being naive.

Ok, and now I've put it out there into the genius that is the BP cosmos. What wisdom do you all have?  

Ah, yes. I've also spoken with five lenders on the purchase side and disclosed this information. Thanks for the heads up on that as well, @Dave DeMarinis

 Thanks so much. Your comments are confirming things I've read or discussed with others already.

I'll be working the phones (from Ethiopia where I live and work) the next two weeks to see if I can find one, single lender who could help me on both ends of the deal--pulling equity out of one property and then providing a commercial or conventional loan on the other end, and in two different states no less.

Have a great week.

Ah yes. Right, I've already been discussing this with a couple of lenders in the market where I will be purchasing a property. Thanks for the tip.

Another thing I've wondered about is how to do appraisals when I courting lending offers from multiple lenders on my current property. How do I avoid annoying the tenant? Will multiple lenders agree to use one particular appraiser (unlikely, right?)? So, how does the logistics of this all work out. Newbie, can't you tell?

What do you mean by numbers work? I know that I need to make sure that the property I will purchase has cash flow that can cover the primary mortgage and this 2nd mortgage/HELOC that I'll be taking out of a different investment property. Quite a tall order, but I think it is doable. I can also pay off the 2nd mortgage with my own income within three months if I wanted to.

But what did you mean by numbers working for the broker/lender? I'm not clear on what you mean.

@Shaun Weekes

Thanks.

I would have loved to have done it all with one lender, but my properties (the one with equity and the one I'll purchase) are in different states so it makes it difficult.

There's a will, though, so there's got to be a way.

Thanks. I've checked with both the HELOC lender and the 2nd mortgage lender and they have no qualms with how I use the money. I was transparent about my usage.

However, your note of caution reminds me to check timelines with these lenders as well.

I won't use hard money as these are not quick turn around properties or purchases. 

Again, thanks

I'm in the middle of pulling out equity from one investment property (HELOC or 2nd mortgage, whichever gives me the best rates and LTV) and then using that money to put a downpayment on a second property, thereby needing another lender on the purchase side.

I've never done this.

How do I go about doing this with the least hit to my credit score (still a newbie to where my credit score will help me right now secure traditional financing)? Also, how should I time everything? If it's a 2nd mortgage that I get against my investment property, then I want to make a move on a new investment property purchase immediately.

Thoughts from the experts on this?

I'm in the middle of pulling out equity from one investment property (HELOC or 2nd mortgage, whichever gives me the best rates and LTV) and then using that money to put a downpayment on a second property, thereby needing another lender on the purchase side.

I've never done this.

How do I go about doing this with the least hit to my credit score (still a newbie to where my credit score will help me right now secure traditional financing)? Also, how should I time everything? If it's a 2nd mortgage that I get against my investment property, then I want to make a move on a new investment property purchase immediately.

Thoughts from the experts on this?

Which of the podcasts have the best info on market analysis. I feel like many touch on it briefly, but not necessarily in too much depth. Which one had the most depth on market analysis?

Thanks in advance everyone.